Residents of a small town have fond memories of ice skating at a local park. An...

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Residents of a small town have fond memories of ice skating at a local park. An artist has captured the experience in a drawing and is hoping to reproduce it and sell framed copies to current and former resident. He thinks that if the market is good he could sell 380 copies of the elegant version at $125 each. If the market is not good, he would only sell 250 copies of the elegant version at $90 each. He would make a deluxe version of the same drawing instead. He feels that if the market were good he could sell 500 copies of the deluxe version at $100 each. If the market is not good, he would only sell 400 copies at $75 each. The production (fixed) cost would be approximately $35,000 for elegant version, and $38,000 for deluxe. He could also choose to do nothing at this time. He believes there is a 60% probability of a good market (thus, 40% chance for a bad market). Residents of a small town have fond memories of ice skating at a local park. An artist has captured the experience in a drawing and is hoping to reproduce it and sell framed copies to current and former resident. He thinks that if the market is good he could sell 380 copies of the elegant version at $125 each. If the market is not good, he would only sell 250 copies of the elegant version at $90 each. He would make a deluxe version of the same drawing instead. He feels that if the market were good he could sell 500 copies of the deluxe version at $100 each. If the market is not good, he would only sell 400 copies at $75 each. The production (fixed) cost would be approximately $35,000 for elegant version, and $38,000 for deluxe. He could also choose to do nothing at this time. He believes there is a 60% probability of a good market (thus, 40% chance for a bad market).